How important are referrals?

Originally Posted by Gary Boye Forgive me if I'm wrong, but I don't think that the question you asked is the real question that prompted you to insert the little blue confused gargoyle. So what are you really confused about?

You mentioned that you don't but does that mean we shouldn't?

Originally Posted by bridger480 You mentioned that you don't but does that mean we shouldn't?

I don't know if you should. That's a business decision you have to make for yourself.

If, for instance, your employer has said that you must do that, then, in my opinion, you certainly should. I never suggest insubordination to anyone, and, I never tolerated it from people who worked for me.

However, I never encouraged the practice of asking for referrals among people I managed. So it wasn't an issue.

What are your beliefs on referrals--and--where did those beliefs come from? If you are presently asking for referrals and you are truly getting measureable, favorable, results from that practice, then why change?

But keep in mind the original question on this thread: How Important Are Referrals?

They are vitally important to me. So--it's not a question I would have asked.

Originally Posted by Gary Boye I don't know if you should. That's a business decision you have to make for yourself. If, for instance, your employer has said that you must do that, then, in my opinion, you certainly should. I never suggest insubordination to anyone, and, I never tolerated it from people who worked for me. However, I never encouraged the practice of asking for referrals among people I managed. So it wasn't an issue. What are your beliefs on referrals--and--where did those beliefs come from? If you are presently asking for referrals and you are truly getting measureable, favorable, results from that practice, then why change? But keep in mind the original question on this thread: How Important Are Referrals? They are vitally important to me. So--it's not a question I would have asked.

I'm not sure I really understand but that's okay. I appreciate your help. Thank you.

Originally Posted by bridger480 I'm not sure I really understand but that's okay. I appreciate your help. Thank you.

It's nobody's fault. It has taken me years to realize that we cannot provide answers from a particular paradigm for questions that are from another paradigm. It think this has been an example.

Originally Posted by Gary Boye It's nobody's fault. It has taken me years to realize that we cannot provide answers from a particular paradigm for questions that are from another paradigm. It think this has been an example.

Isn't business all about networking? Wouldn't that include referrals then? How are multimillion dollar deals completed every year without the use of networking?

I know it's cliche, but doesn't the old adage apply here, "It's not what you know, but who you know" can make the big difference.

Doesn't it make sounds to leverage other people's contact if a business associate freely gives it to you? It never hurts to ask, if done so in the correct and appropriate manner...

Originally Posted by msanti85 Isn't business all about networking? Wouldn't that include referrals then? How are multimillion dollar deals completed every year without the use of networking? I know it's cliche, but doesn't the old adage apply here, "It's not what you know, but who you know" can make the big difference. Doesn't it make sounds to leverage other people's contact if a business associate freely gives it to you? It never hurts to ask, if done so in the correct and appropriate manner...

There is a Zen parable where a group of students ask the teacher to explain the moon. The teacher turns, looks up, and points to the moon.

One student says, "Oh, the moon is a finger."

Although I'm a proponent of certain forms of direct response marketing, my success from referrals has been gratifying and literally inordinate over a period of many years. As I've mentioned, I don't ask for referrals.

You are right--who you know can make a big difference. But if it was a hard fast principle in selling, we would have to ignore men and women in direct sales that have made mid-six figures working territories and environments of complete strangers.

You ask rhetorically: "Isn't business all about networking?"

Your point is well taken, but, NO, business is not all about networking. Selling is the most important skill in business. Networking is a form of marketing that might be described as active, but in real life experience can be quite passive.

Active or passive--is it an important aspect of business? It certainly can be.

I can't crawl into another person's mind. I can only intelligently speculate. If we had the ability to examine the paradigm of networking for a person with a new startup printing business who joins the local Chamber of Commerce to network--and--a high roller who is an instrumental player in one of those multimillion dollar deals, we might find vastly different mindsets. I believe the more we become something, the harder it is to actually describe what it is that we do that makes us what we are. Not impossible--but hard.

Originally Posted by msanti85 Isn't business all about networking?

It isn't "all" about networking but I get your drift and can say that some of the most successful real estate agents I know rely "heavily" on networking and referrals.

Originally Posted by msanti85 It never hurts to ask, if done so in the correct and appropriate manner...

True. IMO, relying on a client to generate a referral is not a good idea.

Originally Posted by AZBroker IMO, relying on a client to generate a referral is not a good idea.

I respectfully disagree!

If you do great work for your clients, they won't be able to wait to tell others about you. The key is to really nurture your client relationships. Follow up with the ones that are your best clients. Send them a note, take them to lunch, do something extra for them. Ask them why they like you so much...you might learn something, and, by saying out loud why they like you, it makes it easier for them to say those same words to someone else--a potential referral.

That said, referrals don't work for all kinds of business. And not everyone has that knack of being able to really connect with their clients. However, it can and is a great strategy for many small and solo business owners.

Peace,
Terri Z

I should have been more specific. IMO, there are sales positions where relying on a client to generate a referral is not a good idea. These would be those positions where the type of relationship you detailed are not typical.

Thanks for the input Terri.

Originally Posted by terriz If you do great work for your clients, they won't be able to wait to tell others about you. The key is to really nurture your client relationships. Follow up with the ones that are your best clients. Send them a note, take them to lunch, do something extra for them. Ask them why they like you so much...you might learn something, and, by saying out loud why they like you, it makes it easier for them to say those same words to someone else--a potential referral. Terri Z

Right on the money, Terri. Wonderful insight. You speak from experience I'm sure.